All major events are over and market is not going anywhere. For last 3 weeks Bank Nifty is trading between 18600 and 18150 with 18500 as strong resistance and 18300 as strong support. Prices below support or above resistance hardly sustain.
Today index opened Gap down reacting to Fed Rate cut and Hawkish Tone about future numbers of rate cuts in 2017. Sharply recovered, that become common pattern now a days to react negatively to adverse news and then recover sharply.
Wave b of upside correction is completed at 18143 (Exactly at Trump Low). Index recovered sharply and "a/i" of wave c on upside completed at 18526 and wave "b/ii" is in progress, that is expected complete nearby 18300 level, that is acting as strong support. Post completion of wave"b/ii", wave "c/iii" of wave c on upside can reach 18800/18950 if it can take out resistance at 19700 level ( we saw index coming down 2 times after it crossed 18700 to 18200 level). Either we have triangle pattern complex correction(abcde) or wave c may form ending diagonal in its 5th wave.
Another possibility is shown in the following chart.
This chart shows complex correction started on Nov 28 at low of 18195 and wave e of complex correction started from today's low. Target for wave e 18700/18800.
It seems next 1-2 weeks Bank Nifty remain in the same range as it is for last 3 weeks (18700-18200).
The quarterly corporate earning/result season would start in 2nd week of Jan 2017 and market may remain sideways with negative bias till Jan 2017 end. The negative effect of demonetization on corporate earnings may lead market to steeper fall.
I am posting a bigger time frame weekly chart that indicating possibility of down move in coming months.
Watch similarity in the pattern. I will discuss this in weekly update.
Today index opened Gap down reacting to Fed Rate cut and Hawkish Tone about future numbers of rate cuts in 2017. Sharply recovered, that become common pattern now a days to react negatively to adverse news and then recover sharply.
Wave b of upside correction is completed at 18143 (Exactly at Trump Low). Index recovered sharply and "a/i" of wave c on upside completed at 18526 and wave "b/ii" is in progress, that is expected complete nearby 18300 level, that is acting as strong support. Post completion of wave"b/ii", wave "c/iii" of wave c on upside can reach 18800/18950 if it can take out resistance at 19700 level ( we saw index coming down 2 times after it crossed 18700 to 18200 level). Either we have triangle pattern complex correction(abcde) or wave c may form ending diagonal in its 5th wave.
Another possibility is shown in the following chart.
This chart shows complex correction started on Nov 28 at low of 18195 and wave e of complex correction started from today's low. Target for wave e 18700/18800.
It seems next 1-2 weeks Bank Nifty remain in the same range as it is for last 3 weeks (18700-18200).
The quarterly corporate earning/result season would start in 2nd week of Jan 2017 and market may remain sideways with negative bias till Jan 2017 end. The negative effect of demonetization on corporate earnings may lead market to steeper fall.
I am posting a bigger time frame weekly chart that indicating possibility of down move in coming months.
Watch similarity in the pattern. I will discuss this in weekly update.
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